Australian-listed Cazaly Resources has identified two priority drilling targets at its Abenab North project in northern Namibia after completing a 196-line-kilometre magnetic survey, with the company now preparing to investigate copper mineralisation similar to that found at the historic Tsumeb mine.
The company said in its September 2026 quarterly activities report that the survey had confirmed distinct magnetic anomalies at the Accra and Abenab prospects, allowing it to narrow its initial drilling programme to these two areas.
Drilling is expected to begin in early 2027, subject to the completion of land access arrangements and further preparatory exploration.
The findings represent a change in the company’s exploration priorities after new survey information raised questions about the location of a previously identified magnetic anomaly at the Cadix prospect.
Cazaly said Cadix had consequently been downgraded and would undergo further ground investigations before any drilling decision was made.
The Abenab North project covers approximately 790 square kilometres within the Otavi Fold Belt, about 20 kilometres from the historic Tsumeb mine and approximately 450 kilometres by road from Windhoek.
Cazaly holds a 95% interest in the project, which is situated in an area known for copper, lead, zinc, vanadium and other base-metal deposits.
The company is now placing greater emphasis on copper exploration, seeking mineralisation associated with geological structures similar to those that hosted the Tsumeb deposit.
Survey changes drilling priorities
The drone magnetic survey was conducted across three priority areas at Accra, Cadix and Abenab, covering approximately 196 line kilometres.
Survey lines were flown from east to west at 50-metre intervals, with north-south tie lines spaced 500 metres apart. The survey used a caesium-vapour magnetometer at a nominal ground clearance of 30 metres.
Cazaly said the new data provided substantially better detail than historical regional magnetic surveys, enabling the company to distinguish individual magnetic sources and improve its interpretation of potential mineralisation.
The results confirmed that Accra and Abenab contain discrete magnetic source bodies, which the company has now identified for initial drill testing.
However, the survey also indicated that the historical magnetic anomaly at Cadix might have been incorrectly plotted, prompting the company to reconsider the prospect’s priority.
Cazaly said further ground investigations would be required at Cadix before deciding whether the area justified drilling.
Several additional pipe-like magnetic anomalies have also been identified across the licence, although these remain to be investigated.
The company has not yet established whether the magnetic anomalies at Accra and Abenab contain economically significant copper mineralisation. Drilling will be necessary to determine the geological characteristics and mineral content of the identified targets.
Search for Tsumeb-style copper deposits
Cazaly’s exploration strategy is increasingly focused on identifying copper mineralisation within the carbonate rocks of the Otavi Fold Belt.
The company is concentrating on the Upper Tsumeb Subgroup near its contact with the Mulden Group, particularly where geological structures and historical geophysical data indicate potential mineralisation.
The approach is informed by the geological characteristics of the historic Tsumeb mine, which produced approximately 30 million tonnes of ore grading an average of 4.3% copper, 10% lead and 3.5% zinc.
Tsumeb also contained significant silver and germanium mineralisation, with historical grades averaging 95 grams per tonne of silver and 50 grams per tonne of germanium.
Other historic mining operations in the region include Kombat, which produced approximately 12.5 million tonnes grading 2.6% copper, 1.55% lead and 18 grams per tonne of silver.
The nearby Abenab vanadium mine historically produced approximately 1.85 million tonnes of ore grading 1.03% vanadium pentoxide.
These historical figures illustrate the mineral endowment of the Otavi region but do not represent resources identified within Cazaly’s Abenab North licence.
Cazaly said its exploration would concentrate on areas where geological structures could have provided favourable conditions for copper and other base-metal mineralisation.
The company intends to investigate these areas through soil sampling, geological mapping and detailed geophysical surveys before drilling.
Land access agreements next
Cazaly said additional land access agreements would be required to support exploration across the broader licence area, particularly in the southern section where it intends to investigate the Otavi Group carbonate sequence.
The planned work includes soil sampling to identify copper anomalies, field mapping to refine geological interpretations and further geophysical investigations to determine drilling priorities.
The company expects these activities to support the initial drilling programme at Accra and Abenab in early 2027.
The quarterly report also disclosed that Cazaly spent A$547,000 on exploration activities across its portfolio during the September quarter, with the main expenditure associated with drilling at its Goongarrie Gold Project in Australia and the drone magnetic survey at Abenab North.
However, the company did not provide a separate expenditure figure for Namibia.
Cazaly reported approximately A$4.1 million in cash and investments at 30 September 2026, including A$3 million in cash.
The company also appointed Adrian Byass as managing director, effective 8 October 2026, following the departure of Tara French.
Byass, a geologist with more than 30 years of experience in exploration, resource evaluation and mine development, is overseeing a strategic review intended to concentrate the company’s resources on two or three principal projects.
The review could result in partnerships, joint ventures or other transactions involving assets outside the company’s preferred portfolio, although Cazaly has not announced any change to its ownership of Abenab North.
The immediate priority in Namibia remains completing access arrangements and refining the Accra and Abenab drilling plans, with the first holes expected in early 2027.
The results will determine whether the magnetic anomalies identified during the September quarter are associated with copper mineralisation and warrant more extensive exploration.
